Schaeffler to strengthen entry into defense business - Schaeffler to strengthen entry into defense business
Schaeffler is pushing into new markets while facing challenges in its core automotive sector. The company has announced plans to expand in defense and humanoid robotics, targeting billions in future revenue. At the same time, it is cutting thousands of jobs across Europe due to weak demand.
In November 2024, Schaeffler revealed it would reduce its workforce by 4,700 in Europe, with 2,800 of those cuts affecting German sites. The move follows declining demand in its automotive division, which has pressured profits.
The company is now focusing on growth in defense and robotics. Its defense business aims to reach âŹ1 billion in revenue within five years. Unlike some competitors, Schaeffler will not rely solely on repurposing automotive technology for military contracts.
Alongside defense, Schaeffler is investing in humanoid robotics, a sector expected to generate billions in revenue. Since late 2024, it has partnered with Neura Robotics to develop and supply critical components, including actuators. Despite these expansions, automotive and industrial operations will remain the companyâs main revenue sources, with new ventures contributing up to 10% by 2035.
Schaefflerâs job cuts reflect ongoing struggles in its traditional automotive market. Meanwhile, its investments in defense and robotics signal a shift toward high-growth sectors. The company expects these new areas to play a larger role in its financial future.
